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Thread: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

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    Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Legislation unveiled by Sen. Tom Harkin (D-Iowa) Wednesday as part of a larger higher education package would allow private student loans to be discharged in bankruptcy.The Higher Education Affordability Act, introduced by Harkin as chair of the Senate Health, Education, Labor & Pension Committee, includes a host of items that aim to address college costs and debt. The entire proposal out of the Senate is largely a Democratic wish list for reauthorizing the Higher Education Act.
    Private student loans are currently nearly impossible to discharge in bankruptcy, due to a bankruptcy reform package pushed through by Republicans in 2005.
    "The upcoming reauthorization of the Higher Education Act, which the HELP Committee has been focused on for nearly a year, presents an historic opportunity for Congress to focus attention on college affordability and accountability, help borrowers with existing student debt, and increase transparency so students and families can make informed decisions," Harkin said in a statement. "This proposal is based on recommendations the Committee has received through its series of bipartisan hearings."


    Read more @: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Should this be brought to the table and passed? In my opinion, yes. As always my position is, getting a higher education should not be a punishment, and this is a step in that direction


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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Oh HELL no. That'd be the end of the education system as you know it. Low life scum would just load up for a few degrees and write it off. It's bad enough now we let them take on jobs and not pay it back. Imagine how much better our education system would be if the low life's paid their loans back...the next generation might actually have money to borrow.
    "What difference" "does it make?"

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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Quote Originally Posted by CalGun View Post
    Oh HELL no. That'd be the end of the education system as you know it. Low life scum would just load up for a few degrees and write it off. It's bad enough now we let them take on jobs and not pay it back. Imagine how much better our education system would be if the low life's paid their loans back...the next generation might actually have money to borrow.
    1) Filing bankruptcy isn't easy.
    2) College prices are astronomically inflated.
    3) College loans have insane interest rates.
    4) If a person is put into the position of: pay college loans or pay for groceries/rent/electric, obviously, life sustaining necessities should come first.
    5) As long as the government is printing money backed by nothing there will be more monopoly money available for future generations.

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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Quote Originally Posted by Jango View Post
    1) Filing bankruptcy isn't easy.
    2) College prices are astronomically inflated.
    3) College loans have insane interest rates.
    4) If a person is put into the position of: pay college loans or pay for groceries/rent/electric, obviously, life sustaining necessities should come first.
    5) As long as the government is printing money backed by nothing there will be more monopoly money available for future generations.
    Do you know what private loans are? they are not loans from the government they are not stafford federal loans.
    it is like going to the bank and getting a loan for a car only it is for education purposes.

    so the government has nothing to do with private student loans.
    private loans are usually meant to suppliment the stafford loans if they stafford loan doesn't cover the tuition.

    calgun is right there is nothing stopping someone from getting all private loans to pay for there college then filing bankrupcty to discharge them. if this passed i would stop all private loans as i can't take the risk which means that people who are short money for college would either have to pay it out of pocket or go on a payment plan with the school to pay it off.

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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Eh, I am 100% FOR any means of reducing the debt burden on people who have acquired college educations, for the simple economic benefit.


    But.


    Not this. When you file bankruptcy, they TAKE everything of value higher than 5k to pay off those debts. Which are usually the items that incurred such debt in the first place. In others words, pay for what you purchased, or give it back. This simply does work for college loans. You may as we'll declare college education to be free. 7 years post graduation is a small price to pay for an icy league education.
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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Quote Originally Posted by TheDemSocialist View Post
    Read more @: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Should this be brought to the table and passed? In my opinion, yes. As always my position is, getting a higher education should not be a punishment, and this is a step in that direction

    [/FONT][/COLOR]
    And what will prevent every single student from filing bankruptcy after they've finished their education? Immediately after bankruptcy, creditors are willing to extend credit. "Great!! We'll let you start all over again!!" What's wrong with our government? It doesn't care what's best for the American people. The only damned thing it cares about is scoring points with the electorate.

    If student loans can be discharged during bankruptcy, why would banks loan to kids with no income and no job? You tell me. And if you say, "Because the government will guarantee the loan," I'd say to you "Not with MY money you don't."

    I'll tell you what. I'll compromise. Grant students 50% of community college tuition paid by semester with a C or better average. Any student who maintains a C or better average for two years at a community college gets a $10,000 total grant (by-semester) for the college of his/her choice. Period.

    #Watch college tuitions fall as frosh/soph enrollment drops off the cliff.
    #Watch kids learn to spend that $10,000 tuition grant more wisely than we ever thought possible.
    #Watch them work at part-time jobs to finish paying for their own college.

    No student loan bankruptcy. And no more loans for a Bachelor's Degree in Sewing. Loans are career- and grade-dependent.

    You want me to loan YOU money? Welcome to "strings".

    But that most surely is not "The Democratic Way."

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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Quote Originally Posted by Jango View Post
    1) Filing bankruptcy isn't easy.
    It's actually easier than you think. Instead of paying the money for the student loans and other debt , bankruptcy attorneys suggest you save that money for the cost of the bankruptcy lawyers and court.

    2) College prices are astronomically inflated.
    3) College loans have insane interest rates.
    And they know this when they sign for those loans.

    4) If a person is put into the position of: pay college loans or pay for groceries/rent/electric, obviously, life sustaining necessities should come first.
    Where is the personal responsibility of the person here? Where do you hold the person accoutnable for their decisions. So, if someone needs money for food is it ok to rob a bank then and get off free because you needed money? If you wouldn't allow that why would you allow this?

    5) As long as the government is printing money backed by nothing there will be more monopoly money available for future generations.
    And that excuses this why?

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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    OMG Ignorance is bliss.

    1) Filing bankruptcy takes less than a year, and its relatively off your record in 7, and most of the students can't pay their loans back in that time so its far easier then repaying their loan which they'd rather do.

    2) College prices are inflated -that is your lame opinion and not the fact. Did you ever wonder why the cost is so high? They try to give education to too many people.

    3) Give me a break you clearly are clueless and don't even know what federal loan rates are on student loans do you! What a freeking joke you just demonstated how little you know about the topic - you need to go look it up.

    4) If a person is in such a position then they should have never been given an eduation until after they got on their feet financially. The fact is they are not required to choose between food and loan payments but they should be required to choose between loan payments and xboxing.

    5) Ah yes the sky will fall - please by my gold.


    Quote Originally Posted by Jango View Post
    1) Filing bankruptcy isn't easy.
    2) College prices are astronomically inflated.
    3) College loans have insane interest rates.
    4) If a person is put into the position of: pay college loans or pay for groceries/rent/electric, obviously, life sustaining necessities should come first.
    5) As long as the government is printing money backed by nothing there will be more monopoly money available for future generations.
    "What difference" "does it make?"

    Hillary 2016

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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    we're insane for putting such a huge paywall between our citizens and their complete intellectual development. considering that our intellectual pool is what we have to draw from to solve critical problems and innovate solutions, it's completely idiotic. some lower cost options are emerging, so at least that's good, but college is much more than job training. it's weightlifting for the mind at a crucial point in development.

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    Re: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans

    Quote Originally Posted by Jango View Post
    1) Filing bankruptcy isn't easy.
    2) College prices are astronomically inflated.
    3) College loans have insane interest rates.
    4) If a person is put into the position of: pay college loans or pay for groceries/rent/electric, obviously, life sustaining necessities should come first.
    5) As long as the government is printing money backed by nothing there will be more monopoly money available for future generations.
    Huh? No they don't.

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